This week brings good news for both homeowners and business owners in Massachusetts looking to install solar panels. Washington, D.C.-based Sol Systems announced a trio trio of finance options designed to make solar energy even more affordable throughout the state.

How do the finance options work?

In a growing number of states, utilities are required to get a percentage of their electricity from renewable energy sources. To meet these requirements, utilities in some states are buying the credits associated with the output of clean energy systems, like solar panels. As a result, these credits have real value: a homeowner in New Jersey, for example, could have sold their credits for about $615 a piece.

Because these credits have value, aggregators, like Sol Systems, are willing to buy them — either upfront or over time. Here’s more on the three solar finance options Sol Systems is now offering Massachusetts buyers:

Sol Upfront

First off, Sol Upfront now lets both commercial and residential solar customers pre-sell up to 10 years worth of Solar Renewable Energy Credits (SRECs). Those who do so will receive a lump-sum payment which will definitely help alleviate a large part of the cost of installation.

Sol Brokerage

Sol Brokerage goes hand-in-hand with Sol Upfront as it allows customers who pre-sell their SRECs to receive the highest spot market prices in exchange for their credits. In other words, those who choose the brokerage options will reduce their exposure to fluctuation in the market price for SRECs. They will receive the same dollar value for all of their pre-sold SRECs no matter the credits’ future value. And if you’re installing a system of 20 kilowatts (KW) or larger, Sol System will waive the brokerage fee.

Sol Annuity

If you’re not interested in pre-selling your SRECs because you think they may hop up in value down the road, the company has a third option designed just for you. Sol Annuity gives Massachusetts solar customers a choice between a three and five year option to receive a fixed price over the agreement of each term. The three-year term offers customers $400/SREC and the five year term offers a lower $275/SREC.

In general, Massachusetts has been a bit behind other states like New Jersey and Pennsylvania when it comes to developing a robust SREC market. So Sol Systems opening its finance options in Massachusetts is great sign, as it means the SREC market is likely expanding within the state.